Sabyasachi Roy, Member (T) - (1.) IN this application the petitioner has challenged the orders passed by the respondent -authorities in the matter of rejection of application in form 78 as per the provisions of the VAT Act, 2003 for continuance of the eligibility certificate issued to its dealer under the West Bengal Sales Tax Act, 1994 (in short, "the Act 1994"). The petitioner is the sole proprietor of the business under the trade name of M/s. Saddam Enterprises, at Post Office and Village: Moshat, P.S.: Chanditala, Hooghly. By the order dated May 22, 2000 of the Deputy Commissioner, Commercial Taxes, Bally circle, the petitioner was granted eligibility certificate under section 39 of the Act 1994 for availing of tax holiday as a small -scale industrial unit for seven years from October 1, 1999 to September 30, 2006. It was submitted that the petitioner was in possession of the land of the factory premises since 1999 and subsequently became absolute owner of the land by dint of "Angikar Patra" dated November 20, 2002 duly signed by the donor/donee and duly endorsed by two witnesses.
(2.) DURING the year 2000 -03, the petitioner started construction of factory shed and buildings to replace the then existing katcha structure in the factory premises after being owner of the land in terms of "Angikar Patra" dated November 20, 2002. Subsequently a deed of gift declaring the same in the form of "hebanama" with an ad -hoc value of Rs. 15 lakh was placed on January 21, 2004 for registration before the registering authorities. As contended in the application, the petitioner invested a total sum of Rs. 11,59,000 during the periods from 2002 -03, 2003 -04 and 2004 -05 for construction of factory shed and building and such expenses were duly recorded in regular books of accounts and also reflected in audit report and balance sheets for those years which were submitted before the assessing authority at the time of hearing.
(3.) REPORTEDLY the petitioner had been enjoying the tax holiday under the Act, 1994 till March 31, 2005 without any objection from any of the respondents. However after introduction of VAT Act, 2003 with effect from April 1, 2005 when the petitioner filed the application for granting eligibility certificate under the VAT Act for the unexpired portion from April 1, 1995 to September 30, 2006 the said eligibility certificate issued under the Act 1994 was terminated with effect from February 2, 2004 by an order dated June 28, 2006 passed by the Assistant Commissioner, Sales Tax, Special Cell (respondent No. 2) and prayer for grant of eligibility certificate for the unexpired portion under the VAT Act, 2003 was also rejected.;